Eramet and BASF Scrap Indonesia Nickel-Cobalt Plant Due to Adequate Nickel Supply and Chinese Competition

Published: Jan 22, 2025 13:48 (GMT+8)

Save

Eramet and BASF Cancel Indonesia Nickel-Cobalt Plant Plan, Citing Sufficient Battery-Grade Nickel Supply

Recently, France's Eramet and Germany's chemical producer BASF canceled their plan to develop a $2.6 billion nickel-cobalt refinery in Indonesia, citing that the supply of battery-grade nickel is already sufficient. Western refineries also have to compete with Chinese refineries, which dominate Indonesia's nickel processing market and operate at lower costs.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

12 hours ago

【SMM Nickel Flash】Indonesia Nickel Ore Daily Price Update — September 22, 2026

Indonesian nickel ore delivered to main Indonesian ports: 1.2% Ni: $26.5/wmt, down $0.5/wmt from the previous assessment. 1.4% Ni: $51.8/wmt, unchanged. 1.5% Ni: $58.5/wmt, unchanged. 1.6% Ni: $63.4/wmt, unchanged. Market update: Indonesia's nickel ore market remains focused on the gradual release of additional 2026 RKAB approvals. Some supplementary quotas have started entering the market, but the government has not announced a final national additional quota. Meanwhile, the revised HPM formula effective September 15 has lowered the benchmark for low-grade limonite, with 1.2% Ni HPM at $24.89/wmt, below current market prices.

12 hours ago

13 hours ago

[SMM Nickel Market Flash] Indonesia’s IMIP RKEF Nickel Pig Iron Smelters Cut Operating Rates to Around 30%-40%

According to SMM market research, RKEF Nickel Pig Iron smelters at Indonesia’s IMIP industrial park started reducing production today, with some production lines now operating at around 30%-40% of normal load. Market sources said El Niño-related dry conditions have reduced rainfall and tightened water availability for equipment cooling and protection. If the current operating rate persists for half a month, Nickel Pig Iron output could be reduced by around 50,000-70,000 mt on a physical tonnage basis. Actual operating rates will continue to depend on weather and water supply conditions, and SMM will continue to monitor further developments.

13 hours ago

SMM Nickel Flash: NPI Market Sentiment Mixed, Upstream Stable and Downstream Slightly Up Ahead of Holiday

[SMM Nickel Flash] On September 22, the SMM high-grade NPI market sentiment factor stood at 1.79, up 0.01 MoM. The upstream sentiment factor for high-grade NPI was 1.84, flat MoM, while the downstream sentiment factor for high-grade NPI was 1.74, up 0.02 MoM. With the holiday approaching, trading sentiment in the NPI market diverged, as some traders opted to withhold offers and suspend quotations, with wait-and-see sentiment intensifying.

13 hours ago